Anadarko is planning to drill up to 10 exploration/appraisal wells in the deepwater Gulf of Mexico, Côte d'Ivoire, and Colombia this year, the company announced today (8 March).
Anadarko CEO Al Walker. Image from Anadarko.
Anadarko is investing some US$770 million allocated for its deepwater and international exploration program for the year, in addition to $1.1 billion in its deepwater Gulf of Mexico, Algeria and Ghana assets. Its total initial capital program for 2017 stands at $4.5-$4.7 billion.
Offshore Colombia, the company anticipated to add to its previous exploration success with another discovery at the Purple Angel prospect.
In Mozambique, Anadarko says it expects to continue advancing the Mozambique LNG project where it has made good progress on the legal and contractual framework, and recently submitted a development plan to the government of Mozambique for the Golfinho/Atum discoveries.
In the Gulf of Mexico, the company plans to continue leveraging its premier infrastructure position and drill approximately seven development tiebacks during the year, says Anadarko.
“Minimal capital investments are expected to be required in 2017 to maintain the steady, long-lived, high-margin oil production provided by the company's strong cash-generating assets in Algeria and offshore Ghana,” says Anadarko.
"Our 2017 initial capital program is designed to leverage our streamlined portfolio and sharpened focus on higher-margin oil production, which is expected to generate stronger returns and substantial cash flow to fund material growth over the next five years," says Al Walker, Anadarko chairman, president and CEO. "With a growing lower-risk resource base of more than 6.5 billion BOE (barrels of oil equivalent) in our premier US focus areas of the Delaware and DJ basins, and the deepwater Gulf of Mexico, I believe Anadarko is poised to deliver exceptional value in 2017 and well beyond.
"In 2017, we plan to allocate approximately 80% of our total capital program toward our US onshore upstream and midstream activities, and our expanded position in the deepwater Gulf of Mexico," says Walker. "These investments provide the foundation for our increased five-year oil growth expectations of more than 15% on a compounded annual basis at current prices. Furthermore, sustained oil production from our deepwater Gulf of Mexico, Algeria and Ghana assets is expected to generate significant free cash flow to support growth and fund future value creation through exploration success and our LNG business."